The Nasdaq Composite ($COMPX) ended the session lower by 3.67 points, or 0.13%, on Monday and it closed at 2,901.99. The strongest performers in the Nasdaq-100 ($NDX) were Green Mountain Coffee Roasters (GMCR) (+4.24%), Vertex Pharmaceuticals (VRTX) (+4.00%), and First Solar (FSLR) (+2.97%). The weakest were Express Scripts (ESRX) (-4.65%), Micron Tech. (MU) (-2.89%), and Expeditors Intl. (EXPD) (-2.45%).
Nasdaq Composite (Figure 3)
As we head into Tuesday, the market is still failing to develop a larger daily reversal pattern despite the upside extension. We'll need more than a two-wave correction on the 15 minute time frame and a break in the 20 day moving averages to confirm. So far the Nasdaq has held its 10-day moving average since December and the S&P 500 and Dow have only broken their 10-day moving averages once. New swingtrades (multi-day strategies) will again be higher risk to initiate than daytrades at this time.
This week is not a particularly busy one for economic data, but some names to watch for earnings on Tuesday will be Coca-Cola (KO), BP (BP), Hartford Financial (HAR), Disney (DIS), and Panera Bread (PNRA).
Unless otherwise stated, the index action described in this article relates to the E-mini futures contracts for the respective indices. Actual index action may differ slightly in terms of pattern formation, although the market bias will remain the same.
Toni Hansen is president and co-founder of the Bastiat Group Inc., DBA Trading From Main Street. Toni is one of the most respected technical analysts and traders in the industry. She has been trading and educating new traders, money managers, professional market analysts and traders throughout the boom and bust of the last decade. She has worked in conjunction with some of the world's top financial exchanges. Learn more about Toni Hansen and the educational services she provides through her website at http://www.tonihansen.com.